Low Keng Huat (Singapore)

(08-03-2013, 08:15 PM)a74henry Wrote: Just analysed the charts. Seems like this counter has peaked and is in a correction mode.

I think you are in the wrong forum!! Looking forward to 5cent div this coming results announcement which will give you close to 8% yield.common LKH surpise us with an even higher div.

I would love to see $0.05 dividend.

How do you derive $0.05 dividend?

LKH - Beacon Amidst The Storm

In midst of negative sentiment towards Singapore based property counters, let us revisit LKH.

LKH is well positioned to ride out the oncoming storm in the local property sector:

i) Steep discount to RNAV estimated in excess of $1.00, possibly to $1.20;

ii) above average sustainable dividend yield of 6.15% (based on historical 4 cents) with a view of upside due to strong operating cashflow over the next few years;

iii) locked in net cash hoard with projects well sold - Minton 100%, PL Sq office (>90%), Parkland Residence EC (>87%)

iv) stable and growing stream of recurrent income - near full occupancy Hotel in Perth and upcoming rental income from PL Sq retail

v) development potential of dirt cheap landbank in JB and KL.

With an excellent track record of sniffing out and undertaking developments in Singapore with strong in house construction capabilities, the pending shakeout in domestic property sector may yet present LKH with emerging opportunities to recycle their cash hoard from well locked in projects highlighted above.

Failing to recycle the cash hoard, there is always an option of delisted parent company General Corp to replicate another delisting option for LKH to extract full value. Noted that the Low family currently owns in excess of 75% stake in LKH.

Vested

http://www.propertyguru.com.sg/listing/f...s-13638979
If the agent is correct, Parkland Residences only left 20 units unsold on 10th March 2012.
Therefore, % sold = 97%.

Despite my misgivings of this project, apparently the project is quite well received.
Average psf is likely about $550psf and cost is around $450psf.
Assuming $100psf profit with a GFA of 753480 sqf, it is about 10cts per share.
Cool...

(12-03-2013, 09:54 AM)greengiraffe Wrote: LKH - Beacon Amidst The Storm

In midst of negative sentiment towards Singapore based property counters, let us revisit LKH.

LKH is well positioned to ride out the oncoming storm in the local property sector:

i) Steep discount to RNAV estimated in excess of $1.00, possibly to $1.20;

ii) above average sustainable dividend yield of 6.15 cents (based on historical 4 cents) with a view of upside due to strong operating cashflow over the next few years;

iii) locked in net cash hoard with projects well sold - Minton 100%, PL Sq office (>90%), Parkland Residence EC (>87%)

iv) stable and growing stream of recurrent income - near full occupancy Hotel in Perth and upcoming rental income from PL Sq retail

v) development potential of dirt cheap landbank in JB and KL.

With an excellent track record of sniffing out and undertaking developments in Singapore with strong in house construction capabilities, the pending shakeout in domestic property sector may yet present LKH with emerging opportunities to recycle their cash hoard from well locked in projects highlighted above.

Failing to recycle the cash hoard, there is always an option of delisted parent company General Corp to replicate another delisting option for LKH to extract full value. Noted that the Low family currently owns in excess of 75% stake in LKH.

Vested

Sorry, just asking... the gearing level doesn't bother you?? Is there sometime I am missing?

(12-03-2013, 04:16 PM)Greenrookie Wrote:

(12-03-2013, 09:54 AM)greengiraffe Wrote: LKH - Beacon Amidst The Storm

In midst of negative sentiment towards Singapore based property counters, let us revisit LKH.

LKH is well positioned to ride out the oncoming storm in the local property sector:

i) Steep discount to RNAV estimated in excess of $1.00, possibly to $1.20;

ii) above average sustainable dividend yield of 6.15 cents (based on historical 4 cents) with a view of upside due to strong operating cashflow over the next few years;

iii) locked in net cash hoard with projects well sold - Minton 100%, PL Sq office (>90%), Parkland Residence EC (>87%)

iv) stable and growing stream of recurrent income - near full occupancy Hotel in Perth and upcoming rental income from PL Sq retail

v) development potential of dirt cheap landbank in JB and KL.

With an excellent track record of sniffing out and undertaking developments in Singapore with strong in house construction capabilities, the pending shakeout in domestic property sector may yet present LKH with emerging opportunities to recycle their cash hoard from well locked in projects highlighted above.

Failing to recycle the cash hoard, there is always an option of delisted parent company General Corp to replicate another delisting option for LKH to extract full value. Noted that the Low family currently owns in excess of 75% stake in LKH.

Vested

Sorry, just asking... the gearing level doesn't bother you?? Is there sometime I am missing?

Er, when you presell everything and just waiting for TOP to hand over keys and collect proceeds - still got gearing meh?

How high is this gearing?

(12-03-2013, 03:59 PM)yeokiwi Wrote: http://www.propertyguru.com.sg/listing/f...s-13638979
If the agent is correct, Parkland Residences only left 20 units unsold on 10th March 2012.
Therefore, % sold = 97%.

Despite my misgivings of this project, apparently the project is quite well received.
Average psf is likely about $550psf and cost is around $450psf.
Assuming $100psf profit with a GFA of 753480 sqf, it is about 10cts per share.
Cool...

Hi Kiwi,

I think you are referring to 10 March 13.

Anyway, good work. Your investigation has certainly reinforced my views that LKH is cashed up for opportunities.

Thanks again.

GG

A Jurong East commercial site URA land tender closed yesterday:

http://www.ura.gov.sg/pr/graphics/2012/pr12-143a2.pdf

http://www.ura.gov.sg/pr/graphics/2013/pr13-17a.pdf

Sim Lian was the top bidder for the site.

LKH tied up with Guthrie and came in 4th for the tender.

IMO, this site is not a particularly attractive site within the crowded Jurong East district.

However, it does indicate that LKH has successfully tied up with financially strong Guthrie that boast of Indonesians Anthony Salim and Putra. LKH was the leading group with an 80% stake for the highly successful PL Sq project with Guthrie as a partner for the first time back then.

We can expect more LKH - Guthrie joint bids going forward. However, we can also expect LKH to continue its prudence in bidding for developments.

Separately, LKH may participate in an upcoming URA residential land sale at Kim Tian Road given its strong track record with Twin Regency, Regency Suites along the same road previously:

http://www.ura.gov.sg/sales/KimTianRd/CL...o(CL).html

Vested

LKH final results to FY1/13 is expected to be released latest by 28 Mar 13 (Thursday) since it will be Good Friday on 29 Mar 13.

Expect LKH to maintain at least 4 cents dividends (ordinary 3 plus special 1) since major bulk of cashflow will only start to flow through after the financial year end.